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Fed focuses on shadow banking as it gauges financial risk
Tighter regulation of banks is prompting more borrowers to seek funding through US$25t shadow banking system
Add BT as a preferred sourcePublished Sun, Mar 29, 2015 · 09:50 PM
Washington
FEDERAL Reserve officials, fresh from the latest round of tests designed to ensure the safety of the biggest banks, are now peering into the darker corners of the financial system as they assess the risks of another crisis.
One source of concern: tighter regulation of banks is prompting more borrowers to seek funding through the US$25 trillion shadow banking system - money-market mutual funds, hedge funds, brokerages and other entities that face fewer restrictions.
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